California utility PG&E explores bankruptcy filing

California utility PG&E explores bankruptcy filing

The filing isn't certain, the people said, but it may be enough to force the hand of state legislators who could come up with a rescue package.

A bankruptcy filing is not PG&E's preference for addressing liabilities from the catastrophic blazes, some of the sources said.

Shares were down more than 18 percent in premarket trading. Because of potential legislative aid, PG&E has not yet determined whether it will make a bankruptcy filing, Reuters reported.

PG&E announced the assessment Friday in a news release, citing "the growing wildfire threat".

However, the company said its board of directors is looking for new members and engaging outside experts for advice on wildfire safety.

The California utility faces billions of dollars of liabilities as a results of wildfires over the past two years.

World Bank's Kim to resign February 1
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The Sacramento Bee reports that PG&E is already facing multiple lawsuits from wildfire survivors.

The California wildfires that scorched millions of acres across the Golden State in late 2018 caused widespread devastation, with loss of human life and property damage just some of the ways that the fires touched the lives of thousands of Californians. But the bill did not cover 2018 fires.

PG&E, whose shares have lost almost half of their value since the wildfire, said it is working with a leading search firm to identify new directors and is interviewing several candidates. In response to a request for a comment from Fortune, PG&E emailed: "T$3 he PG&E Board is reviewing structural options to best position PG&E to implement necessary changes while meeting customer and operational needs".

PG&E shares have plunged almost 50% since November 8, when the deadliest and most destructive wildfire in California history broke out.

Earlier last month, the California Public Utilities Commission (CPUC) opened a proceeding to consider penalties against the company, ordering immediate action against the utility for falsifying safety documents for natural gas pipelines. It had amassed too much debt by buying electricity, which it was then not allowed to recoup by increasing rates for its customers.

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